Problem: The Trektronics store begins each week with 240 phasers in stock. This stock is depleted each week and reordered. The carrying cost per phaser is $29 per year and the fixed order cost is $51. Explain your answers and provides examples.
Required:
Question 1: What are the current total carrying costs?
Question 2: What are the current restocking costs?
Question 3: What is the economic order quantity?
Question 4: How many orders per year will Tektronics place under the new policy?